Information For The Beginner At Stock Trading(2)

With your online account, you can access a wealth of information from the company Website such as articles, newsletters, stock quotes, and lots more.

All your trading is done by the stockbroker who are also available online.

Investors often get into trouble by speculating when they think they're investing.

If you don't understand the difference between the two, you can put yourself in a dangerous situation.


When you invest, you accept whatever return the markets are paying investors in general.

When you speculate, you attempt to beat that return - to do better than other investors are doing - through clever timing, forecasting, or selection.

The implicit assumption is that you have knowledge or talents other investor's lack.

~ As an investor you hold a long-term position in the stock market with no attempt to time your investments or to determine which industry or individual stocks will perform best or you keep your savings in a money market fund or a bank account.

~ As a speculator you select individual stocks, mutual funds, or stock market sectors you believe will do better than the market as a whole or you move your capital in and out of markets according to how well you think they'll perform in the near future








By Indrani Bhattacherjee